Information

December featured business affairs


1. Accounting (Sustainability Information in Annual Securities Reports)

As the discussion at the Working Group on Corporate Disclosure under Financial Services Agency has been progressing toward including a new column for sustainability disclosure in Securities Report with some specifics for disclosure being considered, the focus is now moving on to whether or not to introduce it gradually depending on company aspects such as its listing market segment, in view of the needs from global investors and the burden on companies. Moreover, the discussion covers assurance of sustainability information.

2. Tax (Movements at the OECD- Developing Crypto-Asset Reporting Framework)

On October 10, 2022, the OECD delivered the Crypto-Asset Reporting Framework (CARF), which is a global tax transparency framework for the reporting and exchange of information on crypto-assets.  Crypto assets, unlike traditional financial products, can be transferred and held without the intervention of traditional financial intermediaries such as banks. The development of the CARF indicates that crypto assets and related transactions are not comprehensively covered by the Common Reporting Standard (CRS).

3. Labor Management (Revisions from 2023 to Exemption for Dependent s, etc. with Regard to Non-resident Relatives)

Some revisions on the exemption for dependent relatives aged 16 or older who reside outside Japan are to be introduced in 2023.
Up to December 2022, dependent relatives aged 16 or older who fulfil certain requirements are eligible for the exemption, however, additional age requirements will apply from January 2023 as follows.

- Up to December 2022:dependent relatives aged 16 or older are eligible
- From January 2023: dependent relatives aged 16 or older and under 30, and aged 70 or older are eligible

The dependent relatives aged 30 or older and under 70 will continue to be eligible if fulfilling at least one of the following requirements. In that case, the following documents will also need to be submitted as well as “Documents Concerning Relatives” and “Documents Concerning Remittances” required currently.

【Requirements】
・Those studying abroad:student visa or documents certifying such status
・Those with disabilities:no additional documents
・Those received JPY 380,000 or more of living and education expenses from the resident  during the year:remittance certificates for JPY 380,000 or more
(Source: National Tax Agency “Q&A on Exemption for Dependent Relatives Residing Abroad starting from January 2023-Withholding Tax”)

4. This Month’s Words of Wisdom

“Weak is he who permits his thoughts to control his actions; strong is he who forces his actions to control his thoughts.”
(Og Mandino)

I wish to be the strong one as I age. I will never allow myself to be such an elderly screaming madly at a convenience store.

For more details, please refer to Nagamine & Mishima JC Accounting K.K.

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